{"id":207,"date":"2024-12-08T12:45:15","date_gmt":"2024-12-08T12:45:15","guid":{"rendered":"https:\/\/securelifefinancialllc.com\/secure\/?page_id=207"},"modified":"2025-02-09T19:43:28","modified_gmt":"2025-02-09T19:43:28","slug":"business-enterprise-risk-solution","status":"publish","type":"page","link":"https:\/\/securelifefinancialllc.com\/secure\/business-enterprise-risk-solution\/","title":{"rendered":"Business & Enterprise Risk Solution"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”default” background_color=”#73be6b” custom_padding=”0px||32px||false|false” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_2,1_2″ use_custom_gutter=”on” gutter_width=”1″ _builder_version=”4.27.4″ _module_preset=”default” width=”100%” max_width=”100%” custom_padding=”0px||0px||true|false” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][dizo_image_hover image=”https:\/\/securelifefinancialllc.com\/secure\/wp-content\/uploads\/2024\/12\/Business-scaled.jpg” effect_style=”adv” advanced_style=”dzhvr-border-reveal-cc-2″ button_url_new_window=”1″ module_link_url_new_window=”1″ _builder_version=”4.27.4″ _module_preset=”default” border_radii_image_border=”off|||200px|” box_shadow_style=”preset4″ global_colors_info=”{}”][\/dizo_image_hover][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_slider _builder_version=”4.27.4″ _module_preset=”default” background_color=”#FFFFFF” background_enable_pattern_style=”on” background_pattern_style=”ogees” background_pattern_color=”rgba(0,0,0,0.09)” background_pattern_size=”custom” background_pattern_width=”7px” custom_padding=”88px||88px||true|false” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][et_pb_slide heading=”What Is a Buy-Sell Agreement?” button_text=”REQUEST A CONSULT” button_link=”#popup” _builder_version=”4.27.4″ _module_preset=”default” header_font=”|700|||||||” header_text_align=”center” header_text_color=”#73be6b” body_text_color=”#565656″ background_color=”#FFFFFF” background_enable_color=”on” custom_button=”on” button_font=”|700|||||||” background_layout=”light” hover_enabled=”0″ header_text_align_tablet=”center” header_text_align_phone=”center” header_text_align_last_edited=”on|phone” body_text_align_tablet=”” body_text_align_phone=”center” body_text_align_last_edited=”on|phone” body_font_size_tablet=”” body_font_size_phone=”14px” body_font_size_last_edited=”on|phone” global_colors_info=”{}” sticky_transition=”on” sticky_enabled=”0″]<\/p>\n

A buy-sell agreement is a legally binding contract for managing an ownership transition if an owner departs the business. Also called a buyout agreement, these contracts establish rules and guidelines for who can buy a departing owner\u2019s shares, how the value of the business will be determined, and how each owner\u2019s interest will be valued.<\/p>\n

Buy-sell agreements are typically triggered when an owner dies, retires, or becomes disabled. They can also address the sale of an ownership interest in the event of divorce or bankruptcy or if a partner leaves for another reason<\/p>\n

[\/et_pb_slide][\/et_pb_slider][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” text_font=”|700|||||||” text_text_color=”#122d7c” text_font_size=”30px” text_line_height=”1.8em” header_line_height=”1.1em” text_orientation=”center” custom_padding=”30px||||false|false” animation_style=”flip” animation_direction=”bottom” text_line_height_tablet=”” text_line_height_phone=”1.2em” text_line_height_last_edited=”on|phone” text_orientation_tablet=”center” text_orientation_phone=”center” text_orientation_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n

Type of Buy-Sell Agreements\u00a0<\/p>\n

The three types of buyout agreements are:<\/span><\/h3>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,1_3,1_3″ use_custom_gutter=”on” gutter_width=”2″ _builder_version=”4.27.4″ _module_preset=”default” animation_style=”flip” animation_direction=”bottom” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”A cross purchase agreement” image=”https:\/\/securelifefinancialllc.com\/secure\/wp-content\/uploads\/2024\/12\/gold-bars.svg” image_icon_width=”40%” _builder_version=”4.27.4″ _module_preset=”default” header_font=”|700|||||||” header_text_align=”center” header_text_color=”#122d7c” body_font=”|600|||||||” body_text_align=”center” body_text_color=”#122d7c” background_color=”#FFFFFF” height=”270px” custom_padding=”10px|10px|10px|10px|true|true” border_radii=”on|15px|15px|15px|15px” border_color_all=”#122d7c” box_shadow_style=”preset3″ global_colors_info=”{}”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”An entity purchase agreement” image=”https:\/\/securelifefinancialllc.com\/secure\/wp-content\/uploads\/2024\/12\/continuous-improvement.svg” image_icon_width=”40%” _builder_version=”4.27.4″ _module_preset=”default” header_font=”|700|||||||” header_text_align=”center” header_text_color=”#122d7c” body_font=”|600|||||||” body_text_align=”center” body_text_color=”#122d7c” background_color=”#FFFFFF” height=”270px” custom_padding=”10px|10px|10px|10px|true|true” border_radii=”on|15px|15px|15px|15px” border_color_all=”#122d7c” box_shadow_style=”preset3″ global_colors_info=”{}”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”A wait-and-see agreement” image=”https:\/\/securelifefinancialllc.com\/secure\/wp-content\/uploads\/2024\/12\/key-person.svg” image_icon_width=”40%” _builder_version=”4.27.4″ _module_preset=”default” header_font=”|700|||||||” header_text_align=”center” header_text_color=”#122d7c” body_font=”|600|||||||” body_text_align=”center” body_text_color=”#122d7c” background_color=”#FFFFFF” height=”270px” custom_padding=”10px|10px|10px|10px|true|true” border_radii=”on|15px|15px|15px|15px” border_color_all=”#122d7c” box_shadow_style=”preset3″ global_colors_info=”{}”][\/et_pb_blurb][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”default” background_enable_pattern_style=”on” background_pattern_style=”diagonal-stripes-2″ background_pattern_size=”custom” background_pattern_width=”4px” custom_margin=”0px||||false|false” custom_padding=”0px||0px||true|false” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_2,1_2″ use_custom_gutter=”on” gutter_width=”2″ _builder_version=”4.27.4″ _module_preset=”default” width=”85%” max_width=”70%” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb content_max_width=”100%” _builder_version=”4.27.4″ _module_preset=”default” body_text_align=”justify” body_text_color=”#112f49″ global_colors_info=”{}”]<\/p>\n

A cross-purchase agreement directs the remaining owners (or the surviving owners in the event of an owner\u2019s death) to purchase the departing owners\u2019 interest. In some cases, it might give co-owners the right of first refusal to acquire the departing owner\u2019s interest and allow for a third-party sale if they decline.<\/p>\n

An entity purchase agreement (also called a redemption agreement) allows the business to purchase the departing owner\u2019s share of the business.<\/p>\n

A wait-and-see agreement, or hybrid agreement, allows for the purchase of a departing owner\u2019s shares by either the business, the remaining owners, or both. The decision isn\u2019t made until the triggering event occurs.<\/p>\n

A wait-and-see agreement usually gives the business entity the first option to buy shares from the departing owner. If the business can\u2019t or won\u2019t acquire the shares, they\u2019re offered to the remaining business partners, and if they won\u2019t or can\u2019t purchase the full ownership interest, the business must acquire the rest.<\/p>\n

[\/et_pb_blurb][et_pb_blurb title=”Types of Businesses That Use Buy-Sell Agreements” content_max_width=”100%” _builder_version=”4.27.4″ _module_preset=”default” header_font=”|600|||||||” header_text_color=”#112f49″ header_font_size=”20px” body_text_align=”justify” body_text_color=”#112f49″ global_colors_info=”{}”]<\/p>\n

Buy-sell agreements can be used by business entities such as limited liability companies (LLCs), partnerships, and privately held or closely held corporations as long as they have more than one owner. Sole proprietorships can also use buy-sell agreements to plan for the sale of the business to a key employee if the owner dies or chooses to leave.<\/span><\/p>\n

[\/et_pb_blurb][et_pb_blurb content_max_width=”100%” _builder_version=”4.27.4″ _module_preset=”default” body_text_align=”justify” body_text_color=”#112f49″ global_colors_info=”{}”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”Why Should Small Business Owners Use a Buy-Sell Agreement?” content_max_width=”100%” _builder_version=”4.27.4″ _module_preset=”default” header_font=”|600|||||||” header_text_color=”#112f49″ header_font_size=”20px” body_text_align=”justify” body_text_color=”#112f49″ global_colors_info=”{}”]<\/p>\n

Chances are your e<\/a>xit strategy imagines the best possible scenario: You build your business into a robust company that can sell for a substantial sum when you\u2019re ready to retire or move on to another venture.<\/p>\n

But the reality is that many more events can trigger a business exit. As the saying goes, \u201cLife is what happens when you\u2019re busy making other plans.\u201d By using a buy-sell agreement to plan for unexpected events, business owners can:<\/p>\n

[\/et_pb_blurb][et_pb_blurb content_max_width=”100%” _builder_version=”4.27.4″ _module_preset=”default” header_font=”|600|||||||” header_text_color=”#112f49″ header_font_size=”20px” body_text_align=”justify” body_text_color=”#112f49″ global_colors_info=”{}”]<\/p>\n